The world's largest social networking company said that revenue from mobile ads represented 53 percent of its total advertising revenue in the last three months of the year, or $1.24 billion, versus the 49 percent proportion that mobile ads represented in the third quarter.

"It was a great end to the year for Facebook," said Mark Zuckerberg, Facebook founder and CEO. "We're looking forward to our next decade and to helping connect the rest of the world."

Facebook said it now has 1.23 billion monthly users, with 945 million accessing the service on a smartphone or tablet. Daily active users were 757 million on average for December 2013, an increase of 22% year-over-year. Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year. Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year.

Overall revenue in the fourth quarter rose to $2.585 billion, compared with $1.585 billion in the year-ago period.

Facebook reported net income of $523 million, versus $64 million in the year-ago period.